Tax Planning

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Tax strategies for you & your family

As an example; by using the available personal allowances and gains exemptions, a couple and their two children could have income and gains of at least £86,800 tax-free, and income up to £169,540 before paying any higher rate tax. Through careful tax planning, Sterling Libs & Co. could help you and your family to benefit from more of your wealth.

Your tax planning objectives should include taking advantage of tax-free opportunities, keeping marginal tax rates as low as possible, taking advantage of any tax credits and maintaining a spread between income and capital.

When moving assets between members of the family, planning can be hindered by the potential for tax charges to arise when such assets are moved between members of the family. Most gifts are potentially taxable as if they were disposals at market value, with a resulting exposure to Capital Gains Tax (CGT) and Inheritance Tax (IHT).

However, special rules govern the transfer of assets between spouses. In many cases for both CGT and IHT there is no tax charge, but there are some exceptions. Remember, gifts must be outright to be effective for tax, and must not comprise a right only to income.

Please contact us for further advice on family tax planning including:

  • how you can assist your children financially with things like university fees & buying their first home in a tax efficient way
  • Contingency planning  like having a lasting power of attorney in place.
  • Tax planning when there is a potential for a marriage breakdown

Careful timing and advance discussion with us could potentially save you a lot in tax bill.

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